Finding value on the Indian stock market

What’s the latest on the India stock market? Glad you asked.

“We’re buying…we’re finding a lot of value,” says our new friend, Ajit Dayal. From his office in Mumbai, Ajit runs a mutual fund focusing on Indian shares. “The Index is very high. You look at it and you think Indian shares are too expensive. But the index is not very representative. It includes only a handful of very large cap corporations. And they are too expensive. But overall, stocks in India sell for only 14 times earnings. And they’re growing earnings at more than 20% per year. You’d have a hard time finding those numbers anywhere else in the world.”

Ajit is bullish on India. There are not many things we are bullish on, here at the Markets and Money. And about none of them are we bullish without reservations. Our reservation about the Indian market is that it is too far away…both in distance and in culture. We don’t think we could ever  understand it.

“Useful information declines by the square of the distance from its source,” we recall.

We’re a long way from Mumbai.

Of course, we’re a long way from Tokyo too…and we’re bullish (with reservations) on Japan.

Bill Bonner
Markets and Money

Bill Bonner

Bill Bonner

Since founding Agora Inc. in 1979, Bill Bonner has found success and garnered camaraderie in numerous communities and industries. A man of many talents, his entrepreneurial savvy, unique writings, philanthropic undertakings, and preservationist activities have all been recognized and awarded by some of America’s most respected authorities. Along with Addison Wiggin, his friend and colleague, Bill has written two New York Times best-selling books, Financial Reckoning Day and Empire of Debt. Both works have been critically acclaimed internationally. With political journalist Lila Rajiva, he wrote his third New York Times best-selling book, Mobs, Messiahs and Markets, which offers concrete advice on how to avoid the public spectacle of modern finance. Since 1999, Bill has been a daily contributor and the driving force behind Markets and Money.

Leave a Reply

1 Comment on "Finding value on the Indian stock market"

Notify of
Sort by:   newest | oldest | most voted

Yes. In India stocks are cheaper to be bullish. But still the sensex and most other stocks are getting affected not only by the government decisions but also by the global cues. This is causing a lot of volatility in the market. I see that many stocks have gone up and came back to the same values within a span of three months. This seems to be the longest time the stocks took a beating this year.

Letters will be edited for clarity, punctuation, spelling and length. Abusive or off-topic comments will not be posted. We will not post all comments.
If you would prefer to email the editor, you can do so by sending an email to